Preuksa rethinks VN

By Somluck Srimalee
The Nation
Published on November 18, 2008

Property developer Preuksa Real Estate is rethinking its plans for investment in Vietnam, after sus�pending the idea in the middle of this year, chief executive Thongma Vijitphongphun said.

The company is currently focus�ing its overseas investment interests on a joint venture it is forming with a strategic partner in Bangalore, India, before the end of this year.

However, it is thinking again about Vietnam after land prices there ceased a rapid upward spiral and settled down. It believes the prices may slide because of the neg�ative impacts of the global econom�ic crisis, Thongma said.

Preuksa will begin a study of res�idential development in Ho Chi Minh City and has set aside an investment budget of Bt300 million in case it decides to go ahead.

"We suspended our investment plan in Vietnam in mid2008 because at that time Vietnam's prop�erty market was booming, and that drove land prices up aggressively," he said.

However, Vietnam's economy has slowed down significantly and land prices have steadied, or dropped, so now is a good time for Preuksa to look for business opportunities in Vietnam, Thongma said.

Singapore construction firm and property developer Tee Group is also planning to invest in Vietnam's prop�erty sector next year.

Tee's country manager Boon Choon Kiat said the group was studying the expansion of its invest�ments in Vietnam because the coun�try's economy had slowed down sig�nificantly because of the global eco�nomic crisis.

"This is a good time for us to invest in Vietnam," he said.

Until it slowed recently, Vietnam's economy has enjoyed strong growth since 2005.

As a result, a number of interna�tional land developers have expand�ed their investments by forming joint ventures with local partners. As well as Preuksa, other Thailand proper�ty developers expanding their invest�ments in Vietnam include industri�alestate developer Amata Corporation and Prinventure.

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Preuksa rethinks VN

Property developer Preuksa Real Estate is rethinking its plans for investment in Vietnam, after sus�pending the idea in the middle of this year, chief executive Thongma Vijitphongphun said.

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